Page 63 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

Part 2 - SA 701

701.1 #Unique M19M

Which of the following is incorrect:
a) Communicating key audit matters in the auditor’s report is not a substitute for disclosures in
the financial statements that the applicable financial reporting framework requires
management to make, or that are otherwise necessary to achieve fair presentation;
b) Communicating key audit matters in the auditor’s report is not a substitute for the auditor
expressing a modified opinion when required by the circumstances of a specific audit
engagement in accordance with SA 705 (Revised);
c) Communicating key audit matters in the auditor’s report is not a substitute for reporting in
accordance with SA 570 when a material uncertainty exists relating to events or conditions that
may cast significant doubt on an entity’s ability to continue as a going concern;
d) Communicating key audit matters in the auditor’s report is a substitute for the auditor
expressing a modified opinion when required by the circumstances of a specific audit
engagement in accordance with SA 705 (Revised)

701.2 SM23
Statement 1: Communicating key audit matter in the auditor’s report constitutes a substitute for
disclosure in the financial statements.
Statement 2: Instead of modifying an opinion in accordance with SA 705, the statutory auditor can
use Key Audit Matter paragraph in the audit report with an unmodified opinion.

a) Only Statement 1 is correct
b) Only Statement 2 is correct
c) Both the statements are correct
d) None of the statement is correct

Part 3 - SA 705

705.2 N19M
A company did not disclose accounting policies required to be disclosed under Schedule III or any

other provisions of the Companies Act, 2013, the auditor should issue–
a) a qualified opinion
b) an adverse opinion
c) a disclaimer of opinion
d) emphasis of matter paragraph.

705.5 SM21
The auditor shall express ______ opinion when the auditor, having obtained sufficient appropriate
audit evidence, concludes that misstatements, individually or in the aggregate, are both material
and pervasive to the financial statements.
a) Adverse
b) Qualified
c) Disclaimer
d) None of the above

705.6 SM21
Which of the following is not a type of modified opinion:
a) qualified opinion
b) adverse opinion
c) disclaimer of opinion
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